Petroceltic jumps after drawing shortlist for Algeria project

Shares in Petroceltic International rose almost 6% early on Wednesday, after the oil and gas explorer said it had shortlisted four potential contractors for its flagship Ain Tsila gas field in Algeria.

Along with its joint venture partners, the group carried out a preliminary process to select a short number of companies with experience in working in Algeria, which the group deems capable of delivering the central gas processing facility for the development of the field.

Daewoo Engineering & Construction, GS Engineering Corporation and Dodsal Engineering & Construction PTE, JGC Corporation and JGC Algeria Spa and Tecnidas Reunidas SA and Bonatti are the companies chosen, with the latter three operating on behalf of a consortium, the London-listed group said on Wednesday.

Petroceltic added that the company that will be awarded the contract, will be required to provide an industrial base, administration and accommodation base as well as a gathering facility and a product export system.

The site has been designed to process up to 420m standard cubic feet per day of wet gas, with the resultant product streams of liquefied petroleum gas, streams of dry gas to be transported to existing infrastructure in Algeria.

Petroceltic, which owns a 38.25% stake in the project, while Sonatrach holds a 43.4% stake and Enel holds the remaining balance, has come pressure recently after Worldview Capital Management, which holds a 19% stake in the group, claimed the company “had run out of money”.

Petroceltic shares were up 5.73% to 56.30p at 0925 BST on Wednesday.